Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


The impact of procurement 4.0 on value chain management in public sector organizations

Author(s): Mapanga, A., & Garidzirai, R.

The paper sought to fill the theoretical and empirical knowledge gaps relating to the implication of procurement 4.0 on the South African public sector value chain management. A cross-sectional survey research design with an online questionnaire was employed to gather opinions on the implications of Procurement 4.0 on value chain management in South Africa's public sector.

The complex South African public sector analysis indicates that Procurement 4.0 has several implications on value chain management, demanding a paradigm shift in managing these entities. The study also shows that Procurement 4.0's intelligent and connected technologies impact value chain management in South Africa's public sector organisations in value creation and delivery, efficiency, total costs, agility, flexibility and resiliency. Moreover, procurement 4.0's ability to connect the data across suppliers and other stakeholders' value chains brings transparency and collaboration, reducing frictional drag upon the value chain management performance. It was also apparent that the implementation of Procurement 4.0 necessitates a new skill set for procurement officials.

Full implementation of Procurement 4.0 can increase the effectiveness, efficiency, transparency, and accountability of value chain management in public sector organisations in South Africa and public service delivery.

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